Unclaimed property

More About Unclaimed property

With the most recent version of the Uniform Unclaimed Property Act (UUPA) turning 20 in 2015 -- and the growing number of lawsuits regarding unclaimed property -- lawmakers and state tax practitioners have begun considering how the act can be updated. The most recent version of the UUPA has been adopted by 16 states, and about 40 states have adopted, with modifications, a prior version of the law. Tax Analysts provides news, analyses, and commentary by state tax experts on those unclaimed property matters and more.

The term “unclaimed property” refers to accounts in financial institutions and companies that have not generated activity or contact with the owner for a year or longer. Types of unclaimed property include checking and savings accounts, trust distributions, stocks, and unredeemed money orders, as well as insurance payments, life insurance policies, and contents in safe deposit boxes. In some states, unclaimed property also includes gift certificates or gift cards.

The Uniform Law Commission is drafting a rewrite of the UUPA to address legal, policy, and compliance issues that have occurred since the 1995 to the unclaimed property act. Tax Analysts has published commentary analyzing some of the ULC’s considerations as it works on the new draft, as well as analyses providing suggestions for how the bill should be rewritten to include good public policy and administrative feasibility.

With some states strapped for cash, they have become more aggressive in auditing unclaimed property claims, especially in Delaware, where unclaimed property is a significant revenue source. These and other related unclaimed property matters are addressed in the full-text documents Tax Analysts attains, as well as in its news stories, analyses, and commentary.